Gold price increases by Rs500

The price of gold increased by Rs500 to Rs67,400 per tola, according to the data compiled by the All Sindh Saraf and Jewellers Association.

On Monday, the precious metal was down and traded at Rs66,900 before surging back again in later in the evening to reach its current level. The last week was also volatile in terms of price movements. The prices compiled by the ASSJA come with a lag of a day after changes in international prices. Pakistani traders adjust gold prices based on price movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply.

Gold usually goes up when the dollar falls as investors move away from dollar-backed funds to gold and vice versa.

Last year, gold prices increased by 20%, according to the data compiled by the Pakistan Bureau of Statistics (PBS). This was in line with international trends where gold continued to surge and reached a seven-month high. When this report went online, gold futures were trading at $1,290 per ounce in the international market.

In Pakistan, gold price hit its highest level of Rs68,000 per tola on December 20.